The DJIA surged 765 points while Nasdaq was up 234, the S&P 500 rose 90 points and the 10 year treasury yield was down .15 to 3.66%. Lodging stocks were modestly higher. The two big movers were AINC with a gain of 19% and MCG with a drop of -7% to a new low.
Raymond James reported on hotels impacted by Hurricane Ian’s decimation of southwest Florida. While Tampa Bay dodged the bullet, Sarasota all the way down took a hit led by Naples, Fort Myers, Sanibel, Captiva, Boca Grande, Venice and Punta Gorda. We can tell you that what you are seeing on TV may be horrifying, it pales in comparison to what is really happening. Whether it was storm surge in Ft Myers, 150 MPH winds and 200 MPH Tornados in Boca Grande/Englewood, it is going to take a very long time to recover completely from this even if there has been a lot of progress the first four days. Raymond James said the most damage was done from Naples towards the Sarasota area, ranking Host Hotels’ Ritz-Carlton Beach Resort and Coconut Point Resort and Pebblebrook’s La Playa Beach Resort as most vulnerable REIT-owned hotels to flooding, storm surge and wind damage. Non-REIT owned hotels that likely suffered major damage include JW Marriott Marco Island Beach Resort, Hilton Marco Island Beach Resort, Hilton Naples, Naples Grande Beach Resort, Marriott Sanibel Harbor Resort, Westin Cape Coral Resort and South Seas Island Resort. Orlando had some flooding but they escaped pretty much unscathed, as did Key West resorts. While the resort business may take a while to get back up to speed, hotel rooms will be filled in affected areas by displaced residents, FEMA, insurance adjusters, FPL linemen and then reconstruction crews. We have a few months before snowbird season begins so it is a bit early to predict if there will be a shift more north in what is typical a southwestern Florida bonanza.
Construction on the 150-room Courtyard by Marriott in Downtown St. Joseph in Missouri will begin on May 31 with an anticipated opening December 31, 2024. The hotel will be developed and owned by HDDA and will include a bistro, fitness center, business center and conference space. HDDA had originally expected to use the existing hotel structure but now says they will demolish the current structure in March 2023 and build a new, modern hotel.
Tehachapi, California’s first fully extended stay suite hotel has opened in the Capital Hills area near Adventist Health Tehachapi Hospital. The TownePlace Suites by Marriott features 85 rooms as well as business, gym and pool facilities. A ribbon-cutting ceremony is set for October 20. The hotel is owned by Tehachapi Lodging LLC with management by Hotel Equities.
The Mills House in Charleston, SC marked its conversion to a lifestyle property, joining Hilton’s Curio Collection. RLJ Lodging Trust owns the 218 room, seven story pink structure and has spent a year on $7 million worth of renovations to the property. The renovations include a complete reexamination of all the original guest rooms and the addition of premium suites. Two new food and beverage concepts and the addition of a bar at the second level outdoor pool rounded out the refurbishment. The hotel was formerly St. John Hotel and then was rebuilt into the Mills Hyatt House. RLJ purchased the property in 2017. A year ago, Davidson Hospitality Group took over day to day management.
CoStar/STR reported the Century Plaza Hotel in Los Angeles could have new owners after Next Century Partners could lose its stake in a foreclosure auction on December 14. Century is an affiliate of Woodridge Capital Partners and they spearheaded the $2.5 billion renovation and redevelopment of the hotel in Century City. Woodridge bought the former 726 room Fairmont Century Plaza hotel in June 2008 for $366.5 million and then went on the redevelopment spree. The revamped property features 400 hotel rooms, 331 residential units, and 94,000 square feet of retail and restaurant space. Lenders range from JPMorgan Chase, Colony Capital to the Reuben brothers.
Accor announced the opening of Novotel Mexico City World Trade Center, a new modern hotel offering in Mexico City featuring Novotel’s new global design concept and the second flagship for the brand in the region. The hotel is situated in a prime location in front of the World Trade Center in Mexico City and features 106 rooms. Select suites were created based on the global design concept originally conceived for the Novotel brand by the Sundokovy Sisters. The Novotel Mexico City World Trade Center includes Delia Bistro restaurant and bar, meeting room, fitness center and more.
The Four Seasons Hotel in New York City has remained closed since the start of the pandemic. The NY Post said the closure, despite all the other luxury hotels in the area reopening, is due to a dispute between owner Ty Warner and the Four Seasons management company. The report said the property has been losing money for years and Beanie Baby tycoon Ty Warner reportedly is balking at the fees Four Seasons charges. The two parties are said to have been in negotiations for 18 months with no details given. Sources told the NY Post that it would be three to four years before the hotel reopens. Hotel employees have sued both Warner and Four Seasons, claiming they are stalling the reopening to avoid paying millions of dollars in unpaid wages and severance. Warner still has not reopened the Biltmore hotel in Santa Barbara, CA, also a Four Seasons property.
Sage Hotel Management has taken over management of The Bidwell Marriott Portland located in the heart of downtown Portland, OR. The Bidwell joins Sage’s Premier Collection of hotels and is the company’s fifth hotel under management in Portland. The 258-room property boasts 3,700 square feet of event space, a first-floor shop, second-floor eatery, and a signature M Club lounge.
Selina Hospitality PLC and BOA Acquisition Corp announced the Registration on Form F-4 filed with the SEC was declared effective on September 30. BOA will hold a special meeting of shareholders on October 21 to approve the transaction and Selina said they anticipate the Business Combination will become effective shortly after the meeting.
The Lafayette Hotel and Swim Club in San Diego, CA closed its doors this past Saturday. The closure was so they could move forward on the final phases of their massive restoration project. Consortium Holdings Projects bought the property three years ago. The top to bottom renovations are expected to cost $26 million and are to be completed by May 2023. When the renovation is complete there will be seven food and beverage outlets on the hotel grounds. The second phase will expand the property’s work and wellness venues, including a cold plunge and sauna.
Naya Homes has secured $5 million in funding to grow its vacation and short-term rental platform in Mexico. Naya began operations in Puerto Vallarta in August and said with the funding, they will launch in Mexico City with a 15 unit building in Polanco in September. The funding round was led by Flybridge Capital Partners with participation from Primary Venture Partners, Clocktower Technology Ventures, K50 Ventures, Carao Ventures, Trip Ventures, Colibri Equity Ventures, Derive Ventures in addition to several former executives from Uber’s Latin America unit. Naya Homes has two former Uber staffers on the founding team.
The new Delta Cascades Casino in Ladner, British Columbia has opened. The 500 slots, 18-table, 120-room hotel location includes 160,000 square feet of entertainment space including bars and restaurants and a ballroom. Delta Cascades is operated by Gateway Casinos and is built on the former Delta Town & Country Inn.
The Bay Mills Resort & Casino in Chippewa County in Michigan announced it will soon break ground on a $65 million expansion project after years of planning. Officials said the three story waterfront resort expansion includes adding 134 additional rooms with balconies, a deli, spa, pool, hot tubs, nail salon, fitness center, arcade, conference space and storefront. The exterior plans include new fishing piers, gardens, gazebos and outdoor patios as well as marina upgrades. Groundbreaking is expected in spring 2023 with completion the following year.
Aimbridge Hospitality announces its international division, Interstate Hotel & Resorts has launched its new corporate identity, formally debuting as the Aimbridge EMEA division. The Aimbridge global identity establishes foundations for future growth beyond the UK and Europe. The existing Interstate Hotels & Resorts portfolio comprises over 100 properties across the UK and Europe and includes brands such as Marriott, Hilton, IHG and Accor, as well as independent hotels. David J. Anderson serves as the Divisional President of the Aimbridge EMEA division.